Name and Location
Aurora gold project, Guyana.

Client
Guyana Goldfields.

Project Description
The Aurora gold project contains proven and probable reserves of about 3.47-million ounces of gold, with a grading of 2.74 g/t gold. The project has a total gold resource of 6.54-million ounces of gold in the measured and indicated categories and an additional 1.82-million ounces of gold in the inferred category.

An updated feasibility study on the project indicates that the openpit and underground mining operations are economically robust, with substantial upside potential.

The updated study envisages staged gold production, with initial openpit production at Rory’s Knoll supplying ore to the mill at a rate of 5 000 t/d.

Rory’s Knoll will be mined using the open-benching and sublevel-retreat mining methods through a decline access with truck haulage, while the satellite openpits are mine concurrently. During this phase, mill capacity will increase to 10 000 t/d for five years.

Thereafter, mining will continue underground for nine years, with the mill operating at 5 300 t/d.

The study estimates that 3.29-million ounces of gold will be produced over and initial 17-year mine life.

Value
$205-million.

Duration
Production is expected to begin in 2015.

Latest Developments
Guyana Goldfields has secured a $185-million in secured debt to finance construction of its flagship Aurora gold project.

The lenders, comprising the International Finance Corporation, Export Development Canada, ING Capital, Caterpillar Financial Services Corporation and the Bank of Nova Scotia have agreed to disburse the loan in two tranches.

Tranche 1 covers $160-million and the second tranche entails a cost overrun facility of $25-million. Both tranches are still subject to negotiation and settling of definitive documentation.

The maximum term of the facility is eight years and the interest rate is based on the three-month London Interbank Offered Rate, which, based on current parameters, will be 6.3% for the Tranche 1 facility and 6.8% for the Tranche 2 facility (if drawn). There will be no gold hedging requirements or other similar provisions associated with the facility.

The lenders have set a requirement for Guyana Goldfields to fund $33-million as a precondition for disbursing the first tranche, which the company intends to fund through a private placement of 20-million common shares.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project remains on schedule to achieve commercial production in mid-2015.

Contact Details for Project Information
Guyana Goldfields VP corporate communications Jacqueline Wagenaar, tel +1 416 628 5936 ext 2295 or email jwagenaar@guygold.com.